The Fundamentals favors the USD over the GBP:
- GDP Growth: (GBP: -0.3% / USD: 2.6%) is higher in the US which is better for the USD.
- Inflation: (GBP: 10.1% / USD: 6.4%) is hotter in Britain than the US.
- Unemployment: (GBP: 3.7% / USD: 3.4%) is lower in The US than Britain which is better for the USD.
- Interest Rates: (GBP: 4.0% / USD: 4.75%) is higher in The US which is good for the USD.
The FED is becoming more Hawkish after the recent high inflation numbers, and more likely to increase the rates in a higher pace which push the USD higher.
Sentiment:
-COT Report: shows /67.1%/ of the institutional open contracts are long on the USD, while /43.4%/ are long on the GBP.
This favors the USD over the GBP.
- Retail Sentiment: 51% of retail traders are short.
Technical:
The Price is in a good and healthy downtrend, made a retracement to the /0.5/ fib zone which is a resistance level as well. This gives a good risk to reward ratio.
Trade Safe!
- GDP Growth: (GBP: -0.3% / USD: 2.6%) is higher in the US which is better for the USD.
- Inflation: (GBP: 10.1% / USD: 6.4%) is hotter in Britain than the US.
- Unemployment: (GBP: 3.7% / USD: 3.4%) is lower in The US than Britain which is better for the USD.
- Interest Rates: (GBP: 4.0% / USD: 4.75%) is higher in The US which is good for the USD.
The FED is becoming more Hawkish after the recent high inflation numbers, and more likely to increase the rates in a higher pace which push the USD higher.
Sentiment:
-COT Report: shows /67.1%/ of the institutional open contracts are long on the USD, while /43.4%/ are long on the GBP.
This favors the USD over the GBP.
- Retail Sentiment: 51% of retail traders are short.
Technical:
The Price is in a good and healthy downtrend, made a retracement to the /0.5/ fib zone which is a resistance level as well. This gives a good risk to reward ratio.
Trade Safe!
Trade closed: stop reached
Comment:
The Trade unfortunately reached the stop loss. I'm still bullish on the Dollar, waiting for the CPI numbers next week and see if we get another good short entry.